FREE Guide: 6 Fibonacci Types that Create the Most Precise Price Levels, Targets, and Reversal Zones

June 21 Chart of the Day - CarMax

Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews

CarMax stock was rising Friday in pre-market trading after the used-car retailer posted fiscal first-quarter earnings that beat analysts’ estimates but said economic pressures continue to have a negative impact on sales.

The company reported a 33% fall in first-quarter profit as lower margins from vehicles sold continued to impact the used-vehicle industry.

So we wanted to review their chart from a price action technical analysis perspective.

We have featured over 220 Charts of the Day during the past year and teach Price Action Trading for FREE  to traders who join our Highly Rated Trade Room.

Monthly Chart 

CarMax monthly price action technical analysis review

On the monthly chart we can see that after setting its $155.98 all time high (ATH) back in November 2022 price fell dramatically over the next year melting through many potential support levels.

The bulls stepped in around the $55 level in October 2023 and price rapidly ascended making a series of higher highs and higher lows back up towards the $90 area before being forcefully rejected back down towards $60...

Weekly Chart

CarMax weekly price action technical analysis review

 
On the weekly chart we can see with much more clarity the dramatic fall from ATHs and where price briefly shot up over $150 then reversed starting a downward cycle.

Closing at $71.36 yesterday price has been in a range between the $55 and $88 area for a little more than a year making two round trips between each boundary.

Price is sitting in the middle of that range seemingly with a potential decision to make.  Could this be the time that price breaks out and above the range or will price fade back to the downside again?

Only time will tell for sure what price will do next...

We've layered in traditional Fibonacci levels as well as support/resistance and trend to help identify potential price levels of interest and/or future price targets.

Armed with precision oriented charts like these both traders and investors can formulate their respective plans.

So what's next? 

We don't make predictions...

Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.

  1. Support/Resistance
  2. Trend
  3. Fibonacci 
  4. Supply/Demand Zones,
  5. Change Control Zones

ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.

Take a look at the charts and let us know what you think.  

We'd like to hear from you in the comments sections.

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